LK(SH:600388)2018-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 3,242,459,191.55, representing a 9.63% increase compared to CNY 2,957,657,928.17 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2018 was CNY 250,553,794.70, an increase of 11.00% from CNY 225,732,544.72 in the previous year[18]. - The basic earnings per share for the first half of 2018 was CNY 0.23, up 9.52% from CNY 0.21 in the same period last year[19]. - The company reported a significant increase in prepayments, which rose by 48.87% to ¥495,442,550.85 from ¥332,801,471.58[60]. - The company reported new orders of RMB 6.7 billion in the first half of 2018, a 28.85% increase from RMB 5.2 billion in the same period last year[70]. - The company achieved a historical high in new contracts for metallurgical dust removal projects, indicating strong market demand[55]. - The company reported a profit distribution of CNY 203,264,775.00 to shareholders during the current period[129]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at CNY -276,075,114.82, an improvement from CNY -355,728,781.28 in the same period last year[18]. - Operating cash inflow for the first half of 2018 was CNY 2,943,956,150.50, an increase from CNY 2,845,399,841.91 in the same period last year[120]. - Cash outflow from investment activities totaled CNY 1,907,197,388.03, compared to CNY 72,568,840.11 in the previous period, resulting in a net cash flow from investment activities of negative CNY 1,636,445,193.78[121]. - Cash inflow from financing activities was CNY 1,861,155,000.00, significantly higher than CNY 118,864,000.00 in the prior year, leading to a net cash flow from financing activities of CNY 1,174,225,327.61[121]. - The ending cash and cash equivalents balance was CNY 1,056,629,499.26, down from CNY 1,329,392,840.97 at the end of the previous period[121]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 16,166,176,169.45, a 10.78% increase from CNY 14,593,284,055.48 at the end of the previous year[18]. - Current liabilities totaled CNY 10.80 billion, an increase from CNY 9.58 billion, reflecting a rise of about 12.7%[106]. - The company's total liabilities reached CNY 11.55 billion, up from CNY 10.03 billion, marking a growth of around 15.1%[106]. - The total equity attributable to the parent company at the end of the reporting period is CNY 4,616,570,638.87, showing an increase from the previous period[128]. - The total amount of guarantees provided by the company (including those to subsidiaries) was RMB 116.14 million, accounting for 2.54% of the company's net assets[89]. Business Expansion and Development - The company has expanded its business into new areas such as BOT environmental projects, overseas engineering contracting, and VOCs treatment[21]. - The company is actively expanding into non-electric markets and emerging businesses, accelerating the research and promotion of new technologies[54]. - The company has established a national-level enterprise technology center and various research institutes, providing strong support for continuous innovation in air pollution control technologies[51]. - The company has completed over 700 projects using its pneumatic conveying systems, which are widely applied in industries such as power, metallurgy, and chemicals[43]. Environmental and Technological Innovations - The company continues to focus on air pollution control products, including dust removal, desulfurization, and denitrification technologies, which are at an internationally advanced level[21]. - The low-temperature electrostatic precipitator developed by the company achieves a PM2.5 removal rate of over 98% and reduces coal consumption by more than 1.5g/kWh[24]. - The electric bag composite dust collector has been applied in over 500 units, achieving long-term stable emissions below 5mg/Nm3, and is recognized as a leading technology globally[27]. - The company has developed a series of technologies for multi-component pollutant removal, effectively addressing various environmental challenges in power generation and industrial sectors[32]. Shareholder and Corporate Governance - The company has implemented an employee stock ownership plan, with the second phase completed in July 2015, involving the purchase of 2,478,600 shares, accounting for 0.23% of the total share capital[77]. - The company has authorized a credit limit of up to ¥2.2 billion with Industrial Bank, with an exposure limit of ¥1.615 billion, valid for two years[84]. - The company maintains a good integrity status, with no instances of failing to fulfill court judgments or overdue debts during the reporting period[76]. - The company has established a corporate governance structure including a shareholders' meeting, board of directors, and supervisory board[140]. Market Competition and Challenges - The company is facing increased competition and pressure on profitability due to reduced bidding projects in the power industry and rising coal prices[68]. - The company plans to strengthen cash collection management to ensure profitability amid tight cash flow from power plant users[69]. - The company is expanding its business into non-electric sectors to ensure sustainable development[68].